Small Business Guidance on COVID-19

In addition to guidance from the CDC, see below for updates from the AL Department of Revenue and AL Department of Labor.

Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease 2019 (COVID-19)

The Centers for Disease Control and Prevention (CDC) offers the most up-to-date information on COVID-19. This interim guidance is based on what is currently known about the coronavirus disease 2019 (COVID-19). For updates from CDC, please see the following:

The following interim guidance may help prevent workplace exposures to acute respiratory illnesses, including COVID-19, in non-healthcare settings. The guidance also provides planning considerations if there are more widespread, community outbreaks of COVID-19.

Emphasize staying home when sick, respiratory etiquette and hand hygiene by all employees

Perform routine environmental cleaning

Advise employees before traveling to take certain steps

Check the CDC’s Traveler’s Health Notices for the latest guidance and recommendations for each country to which you will travel. Specific travel information for travelers going to and returning from designated countries with risk of community spread of Coronavirus, and information for aircrew, can be found on the CDC website.

Additional Measures in Response to Currently Occurring Sporadic Importations of the COVID-19:

Employees who are well but who have a sick family member at home with COVID-19 should notify their supervisor and refer to CDC guidance for how to conduct a risk assessment of their potential exposure.

If an employee is confirmed to have COVID-19, employers should inform fellow employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality as required by the Americans with Disabilities Act (ADA). Employees exposed to a co-worker with confirmed COVID-19 should refer to CDC guidance for how to conduct a risk assessment of their potential exposure.

Effectively immediately, the Department of Revenue is extending relief to small retail businesses that are unable to timely pay their February, March, and April 2020 sales tax liabilities. Small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020.

After the expiration of this temporary waiver, the Department will work with taxpayers electing to utilize the waiver program to development workable payment plans that will allow taxpayers to pay outstanding liabilities for February, March, and April 2020 while navigating any other impacts of the coronavirus on their businesses.

This relief is automatic for small retailers filing their February, March, and April 2020 state sales tax returns. Similar sales tax relief may be available on a case-by-case basis to other businesses significantly impacted by the coronavirus (COVID-19) and the preventative measures being taken to limit its spread in Alabama. These taxpayers may contact the Department’s Sales and Use Division at 334-242-1490 to request relief.

AL Department of Labor: Support for Workers Impacted by COVID-19

Alabama Department of Labor Secretary Fitzgerald Washington announced on Tuesday 3/16 that Alabama workers who are not able to work due to COVID-19 will be eligible to file for unemployment benefits.

Based on current guidance from the U.S. Department of Labor, the Alabama Department of Labor is modifying existing unemployment compensation rules to allow workers to file a claim for unemployment compensation benefits who are affected in any of the following ways:

Those who are quarantined by a medical professional or a government agency,

Those who are laid off or sent home without pay for an extended period by their employer due to COVID-19 concerns,

Those who are diagnosed with COVID-19,

Or, those who are caring for an immediate family member who is diagnosed with COVID-19.

The requirement that a laid-off worker be “able and available” to work while receiving unemployment compensation benefits has been modified for claimants who are affected by COVID-19 in any of the situations listed above. Additionally, claimants will also not have to search for other work provided they take reasonable steps to preserve their ability to come back to that job when the quarantine is lifted or the illness subsides. The waiting week, which is typically the first week of compensable benefits, will also be waived.

Certain criteria and exceptions may apply, and are subject to change. Verification of illness or quarantine may be required. Workers can file for benefits online at www.labor.alabama.gov or by calling 1-866-234-5382. Online filing is encouraged.

People who are being paid to work from home, or those receiving paid sick or vacation leave are NOT eligible for unemployment compensation benefits, regardless if they experience any or all of the situations listed above.

Claimants can begin filing these claims on Monday, March 23, 2020

Employers who decide to shut down due to causes related to COVID-19 should treat the shutdown as a temporary layoff. These rules are subject to change pending congressional action.

IRS Indicates that Tax Filing Deadline is still April 15

The U.S. Treasury Department and Internal Revenue Service (IRS) issued guidance on 3/18 allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline.

Individuals: Income
tax payment deadlines for individual returns, with a due date of April
15, 2020, are being automatically extended until July 15, 2020, for up to $1
million of their 2019 tax due. This payment relief applies to all
individual returns, including self-employed individuals, and all entities other
than C-Corporations, such as trusts or estates.

Corporations: For
C Corporations, income tax payment deadlines are being
automatically extended until July 15, 2020, for up to $10 million of their
2019 tax due.

This
relief includes estimated tax payments for Q1 2020 due by April 15, 2020, but
not Q2 payments due by June 15, 2020.

Penalties
and interest will begin to accrue on any remaining unpaid balances as of July
16, 2020. If you file your tax return or request an extension of time to
file by April 15, 2020, you will automatically avoid interest and penalties on
the taxes paid by July 15.

Common Issues Small Businesses May Encounter:

Capital Access – Incidents can strain a small business’s financial capacity to make payroll, maintain inventory and respond to market fluctuations (both sudden drops and surges in demand). Businesses should prepare by exploring and testing their capital access options so they have what they need when they need it. See SBA’s capital access resources.

SBA Economic Injury Disaster Loan (EIDL): EIDLs provide eligible small businesses (and certain nonprofit organizations & agricultural cooperatives) up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.

Workforce Capacity – Incidents have just as much impact on your workers as they do your clientele. It’s critical to ensure they have the ability to fulfill their duties while protected.

Inventory and Supply Chain Shortfalls – While the possibility could be remote, it is a prudent preparedness measure to ensure you have either adequate supplies of inventory for a sustained period and/or diversify your distributor sources in the event one supplier cannot meet an order request.

Facility Remediation/Clean-up Costs – Depending on the incident, there may be a need to enhance the protection of customers and staff by increasing the frequency and intensity by which your business conducts cleaning of surfaces frequently touched by occupants and visitors. Check your maintenance contracts and supplies of cleaning materials to ensure they can meet increases in demand.

Insurance Coverage Issues – Many businesses have business interruption insurance; Now is the time to contact your insurance agent to review your policy to understand precisely what you are and are not covered for in the event of an extended incident.

Changing Market Demand – Depending on the incident, there may be access controls or movement restrictions established which can impede your customers from reaching your business. Additionally, there may be public concerns about public exposure to an incident and they may decide not to go to your business out of concern of exposing themselves to greater risk. SBA’s Resources Partners and District Offices have trained experts who can help you craft a plan specific to your situation to help navigate any rapid changes in demand.

Marketing – It’s critical to communicate openly with your customers about the status of your operations, what protective measures you’ve implemented, and how they (as customers) will be protected when they visit your business. Promotions may also help incentivize customers who may be reluctant to patronize your business.

Plan – As a business, bring your staff together and prepare a plan for what you will do if the incident worsens or improves. It’s also helpful to conduct a tabletop exercise to simulate potential scenarios and how your business management and staff might respond to the hypothetical scenario in the exercise. For examples of tabletop exercises, visit FEMA’s website at: https://www.fema.gov/emergency-planning-exercises

Marketing to a Quarantined Crowd

How do we market to our customers when we are also trying to adhere to social distancing restrictions? We are entering into uncharted waters that appear to be changing everyday. We have a few suggestions on How to Market During the COVID-19 crisis.

All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. SBDC programs are open to the public and all services are provided on a nondiscriminatory basis without regard to race, color, religion, sex, age, disability, or national origin. Accommodations are made for individuals with disabilities.